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Todays price of Las Vegas Sands (LVS) is $35 per share. LVS does not pay dividends. You are interested in a European call option on
Todays price of Las Vegas Sands (LVS) is $35 per share. LVS does not pay dividends. You are interested in a European call option on LVS with a strike of $35 and a maturity of four months. You estimate the volatility of LVS will be 60 percent each year. The c.c. risk-free rate is zero percent. Assume there is no arbitrage. What is the Black-Scholes price of the call option? Round your answer to three decimal places.
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